March brings decisions about both admissions and financial aid. An offer of admission is clear but financial aid packages can be confusing.
When comparing financial aid awards, the bottom line is the cost of education to you and your family. Since the total varies for each college, you’ll need to compare your packages in terms of several factors. First, compare the ratio of grants (gift money) to loans for each school. Packages with larger grants than loans are obviously more desirable. Next, consider how much you and your family are expected to contribute and compare this amount to your total grant award. Are you and your family comfortable with this Expected Family Contribution? Will your earnings help sufficiently toward meeting the expected amount?
Now, compare loan types offered and their terms. The most desirable loans are subsidized student loans with low, deferred interest; these loans do not have to be repaid until after you have completed your education. Private, unsubsidized family or student loans generally require that repayment begins within sixty days of receiving the loan money.
Most financial aid packages also include work-study. Keep in mind that you are free to decline this type of aid; some students prefer to find their own jobs on or off-campus, although there may be significant benefits to work-study employment.
Call the college’s financial aid office to learn how outside scholarships may affect your financial aid package. While some colleges allow students to use these in place of loans, other colleges subtract this amount from grant aid. Ask, too, if you are likely to be awarded a similar package in succeeding years, assuming family finances remain at the same level. Some parts of your package may not be renewable, and this could affect your future cost of attendance.
